diff -r aa92ce9586d8 -r 96379c93ba6f mercurial/dispatch.py
--- a/mercurial/dispatch.py	Thu Sep 10 10:31:12 2009 +0200
+++ b/mercurial/dispatch.py	Wed Sep 09 11:12:36 2009 +0200
@@ -335,7 +335,7 @@
     path = _findrepo(os.getcwd()) or ""
     if not path:
         lui = ui
-    if path:
+    else:
         try:
             lui = ui.copy()
             lui.readconfig(os.path.join(path, ".hg", "hgrc"))